Pooled Trust

A pooled trust is a valuable tool for those exceeding the Medicaid asset limit. Here are some key points to understand about pooled trusts:

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Qualifying for Medicaid

 

• Asset Limit Exemption: Assets placed in a pooled trust do not count against the $2,000 asset limit for Medicaid long-term care benefits. This allows individuals to retain assets without disqualifying themselves from Medicaid.​

• No Gifting Penalty: Unlike transferring assets to family or friends, placing assets in a pooled trust is not considered gifting for Medicaid purposes. This avoids the penalty of transferring assets within five years of applying for Medicaid.​​

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Spending and Restrictions

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• Flexible Spending: Funds in a pooled trust can be used for various needs of the Medicaid recipient, including medical expenses, home care, and even reasonable personal expenses like vacations.

• Restrictions for SSI Recipients: If the Medicaid recipient also receives Supplemental Security Income (SSI), specific restrictions exist on what the funds can be used for.​​

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Management and Costs

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• Nonprofit Trust Company: Pooled trusts are managed by a specialized nonprofit trust company, not by family members or friends. Management fees are generally reasonable.

• Payback Provision: After the Medicaid recipient passes away, the remaining funds in the trust must first be used to reimburse Medicaid for the care provided. There are limited exceptions, such as transferring funds to a surviving spouse on Medicaid.​

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​Purpose and Limitations

 

• Benefiting the Medicaid Recipient: The primary purpose of a pooled trust is to benefit the Medicaid recipient during their lifetime, not to create an inheritance for heirs. Any remaining funds after Medicaid reimbursement are unlikely to be substantial.​​

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Navigating Florida's Medicaid eligibility process can be complex. atCause Law Office, an adept Medicaid Benefits Firm in Clearwater, offers expert guidance in determining eligibility and aid in the application procedure. Call atCause Law Office at 727-477-2255 to find out how we can help.